Czech Republic and Britain alone withhold signatures from EU treaty

Twenty-five of 27 EU member states signed the European Union’s new fiscal compact in Brussels on Friday - but the Czechs were not among them. Prime Minister Petr Nečas together with British Prime Minister David Cameron have opted not to support the treaty, which is aimed at enforcing budget discipline in the union and prevent meltdowns within the eurozone as was seen with Greece.

David Cameron, Petr Nečas, photo: CTK

The Czech prime minister called the treaty disadvantageous for the Czech Republic in enforcing conditions and fines without allowing the country – which is not a eurozone member – to actively participate in all euro zone summits. Moreover, Mr Nečas stressed that he considered it far more important to deepen the common market and increase the competitiveness of the European Union. Here’s what he told Czech Radio about the initiative:

“I have to say that the Czech Republic together with Sweden, the Netherlands and Great Britain are central to this initiative. To date we have a strong unified common market on goods, for example. The same is not true of services: there is great room for potential growth here within the whole of the European Union and individual countries which in turn drives competitiveness.”

The initiative and related issues were discussed in talks with Prime Minister Cameron at 10 Downing Street on Thursday, before he and Mr Nečas boarded the Eurostar train to Brussels. The British prime minister was quick to stress the close ties between the countries that had decided not to sign the fiscal treaty:

Photo: European Commission

“Petr [Nečas] is a very good colleague and a very good friend and the Czech Republic and Great Britain have an extremely close relationship.”

Personal sympathies between Mr Cameron and the Czech prime minister aside, Mr Nečas’ refusal to add his signature to the EU treaty has not isolated him from criticism at home: he has drawn fire not only from the Leftist opposition but also from within his own coalition government, namely from TOP 09 leader and Foreign Minister Karel Schwarzenberg.

The latter has repeatedly made it clear he remains deeply dissatisfied with the Czech Republic’s failure to sign the fiscal treaty. Unlike the prime minister, he suggests it will only hurt the Czech Republic which lacks the obvious political clout of Great Britain, worrying it will leave the country woefully isolated. On Thursday took a broadly different tack, charting his own path to the summit to meet with EU leaders including German Chancellor Angela Merkel. The Foreign Minister Karel Schwarzenberg:

Karel Schwarzenberg

“David Cameron is an excellent statesman but he is looking out for Britain’s best interests. Everyone else here is also looking out for their interests. Everyone except for us.”

The Czech Republic may still hedge its bets: Prime Minister Nečas has not fully ruled out that his country may add its signature in the future. For the time being, however, the Czechs, along with Great Britain are ‘out’ – focussing attention on deepening the common market instead.